Rajeev Awas Yojana

- Cabinet Committee on Economic Affairs has approved the first phase of a new scheme Rajeev Awas Yojana on June 2, 2011 for redeveloping the slums of the cities.
- Centre will provide financial aid to states interested in providing houses with asset rights to the poors living in slums of the cities. About 250 cities of the country have been planned to get covered under the scheme by the end of 12th plan (2012-17). 50 per cent share of the total expenditure will be funded by the centre government. RA Y is to be implemented in two phases : Phase I will be for two years (2011-13) and Phase II will be for the ramaining period of 12th Plan (i.e. 2012-17).
- Centre government has also decided to constitute 'Mortgage Risk Guarantee Fund' with the initial capital of Rs. 1,000 crore, so as to provide institutional credit for house construction under this newly proposed scheme.